Proposed Rule Change for Foreign-Flagged Cruise Ships Pleases Some, Rankles Others

By Aaron Poehler

Published on February 21, 2008

The new rule, which is supported by labor unions, maritime officials, and Hawaii's congressional delegates, would require foreign-flagged cruise ships visiting more than one port to spend 50 percent of their total cruise time at non-U.S. ports, and to make 48-hour stops at each foreign port, rather than the current eight hours or less. Opponents of the change, including tourism officials, foreign-flagged cruise lines, and representatives of other U.S. port cities, say the rule would effectively devastate the current cruise ship tourism industry, driving foreign-flagged ships from many ports and making short trips of seven days or less virtually impossible.

Currently, virtually all cruise ships operating out of U.S. ports are registered under the flags of other countries in order to avoid the costs of meeting U.S. labor laws, environmental regulations, and health and safety standards.

The NCL corporation pulled two of its three Hawaii-based cruise ships from the state this year; estimates of the impact on Hawaii's economy range as high as $964 million in revenue lost by local businesses and up to 9,000 lost jobs. The total number of cruise ship passengers visiting Hawaii in 2008 is projected to be about half of last year's total.

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